Market Monitor: Personal Care

Market Monitor: Personal Care

Read Market Monitor

Download PDF

Market Monitor: Personal Care

Strong Rebound and Growing Opportunities

After a slower 2023, U.S. Personal Care M&A activity rebounded sharply in 2024, with 55 closed transactions, marking a 49% increase over the previous year. A significant portion of these deals was driven by private equity, signaling positive trends for the broader M&A market. Looking ahead, the outlook for 2025 remains strong, driven by several key factors.

Strong Growth in Beauty Care Transactions

  • Beauty Care: Transactions in the beauty care sector nearly doubled in 2024, reflecting the sector’s resilience.
  • Market Drivers: The easing of inflation and declining interest rates are benefiting the consumer discretionary sector.
  • Notable Deals:
    • Helen of Troy’s acquisition of Olive & June (nail care brand).
    • TSG Consumer’s investment in Summer Fridays (premium skincare brand).

Increase in Vitamins, Minerals & Nutritional Supplements M&A

  • Growing Market: M&A activity in the vitamins, minerals, and nutritional supplements sector increased in 2024.
  • Consumer Trends: 75% of American adults now regularly use dietary supplements, according to a recent survey.
  • Private Equity Activity: Notable private equity-backed add-on acquisitions of contract manufacturers, including:
    • Somafina (Heartwood Partners) acquiring UST.
    • Impetus Wellness Group (AEA Investors) acquiring Reliance Vitamin Company.

Factors Driving a Strong M&A Market in 2025

Hexagon Capital Alliance identifies several factors contributing to a favorable M&A environment for 2025:

  • Post-Election Certainty: Greater political and economic clarity.
  • Easing Regulatory Scrutiny: Potential for looser regulatory oversight in the financial sector.
  • Private Equity Capital: Record levels of available private equity dry powder.
  • Strong Balance Sheets: Strategic buyers are in a strong position to make acquisitions.
  • Improving Interest Rates: A more favorable interest rate environment.

Positioning for Success in 2025 M&A

  • Preparation is Key: Companies that prepare early for M&A in 2025 will be best positioned to attract buyers and secure favorable valuations.
  • Strategic Advantage: Early market entry will help businesses stand out in an increasingly competitive market.

How Hexagon Can Help

Hexagon Capital Alliance specializes in M&A advisory for the personal care sector. We help businesses:

  • Prepare for Sale: Position your company to attract the right buyers.
  • Raise Capital: Assist in securing the necessary capital for growth.

For more information or questions, please contact our contributors:

Rich Anderson, Managing Director: randerson@hexagoncapitalalliance.com

Johnny Sherwood, Director: jsherwood@hexagoncapitalalliance.com

Brennan Anderson, Vice President: [email protected]

Market Monitor: Apparel, Accessories & Footwear

Market Monitor: Apparel, Accessories & Footwear

Read Market Monitor

Download PDF

Market Monitor:
Apparel, Accessories & Footwear

Industry M&A Update

M&A activity in the apparel, accessories, and footwear sectors surged in 2024, with transaction volume doubling from 2023, primarily driven by private equity add-on acquisitions. Strategic buyers also increased their activity in the latter half of the year. As we move into 2025, the market is expected to remain strong, driven by several key factors.

Strong Performance in Footwear and Casual Fashion
  • Footwear: Market capitalization rose by approximately 55% in 2024.
  • Casual Fashion & Retail Brands: Saw a 25% increase in market capitalization.
  • Continued Growth: These sectors are expected to continue driving M&A activity in 2025.
Key Drivers of M&A Activity in 2025

Hexagon sees several factors fueling M&A activity in the coming year:

  • Higher Public Valuations: Strong market performance in footwear and casual apparel.
  • High Levels of Dry Powder: Buyers have significant capital to deploy.
  • CEO Confidence: Increased optimism among CEOs for acquisitions.
  • Lower Interest Rates: Decreased rates will make acquisitions more attractive.
  • Reduced Regulatory Burdens: Easier regulatory environment for transactions.
Preparing for M&A in 205
  • Timing: Companies that prepare early in 2025 will be better positioned to attract buyers and secure favorable valuations.
  • Competitive Advantage: Early preparation will help you stand out in a crowded market.
How Hexagon Can Help?

Hexagon’s M&A team has experience in the apparel, accessories, and footwear sectors. We help businesses:

  • Prepare for Sale: Position your company to attract the right buyers.
  • Raise Capital: Assist with capital-raising efforts.
  • Market Insights: Provide up-to-date M&A market trends.

For more information or questions,  please contact our contributors:

Rich Anderson, Managing Director: [email protected]

Tyler Dale, Managing Director: tdale@hexagoncapitalalliance.com

Johnny Sherwood, Director: jsherwood@hexagoncapitalalliance.com

Brennan Anderson, Vice President: banderson@hexagoncapitalalliance.com

Banker Insights: 2025 Healthcare M&A Activity Outlook

2025 healthcare services
M&A activity outlook

M&A Activity outlook

Download PDF

What to Expect and How to Prepare

With 2024 now in the rearview mirror, we thought we would reach out to our Healthcare clients and prospects with some thoughts on what to expect in 2025.  To get right to the point, the next 12 months are expected to be very active for Healthcare M&A and Hexagon predicts 2025 will be a strong seller’s market:

Private Equity Demand

Many Private Equity Buyers have been sitting on the sidelines for the last couple of years due to a higher interest rate environment and valuation sticker shock within the healthcare space from 2020-2023. Most of these groups are starting to feel pressure from their investors to deploy the record amount of capital that they have raised but have not yet invested.

Falling Inflation/Interest Rate Cuts

While the country is still in a relatively high inflationary environment, inflation rates have been tapering off compared to recent years and there is an expectation that the Federal Reserve will likely effect modest rate cuts in 2025.  Lower interest rates enable buyers to use cheaper debt in their acquisitions and therefore cause buying activity to increase.

Competition for Deals

With so many Private Equity buyers jumping back into the M&A market, the competition for good quality healthcare deals will be fierce and therefore likely to push valuations up.

Healthcare business owners who have been contemplating a sale or capital raise in 2025 or even early 2026 should start preparing now.  While competition for deals is expected to be high, buyers are placing greater emphasis on due diligence.  Areas such as regulatory compliance, staff retention rates, as well as billing and coding practices are being scrutinized much more thoroughly.  Sellers that are well-prepared for this buyer due diligence, can generally expect to close their deals faster and can in many cases command a premium valuation.

Hexagon’s Healthcare M&A team has helped hundreds of healthcare business owners navigate successful transactions.  Give us a call if you would like to have a confidential discussion pertaining to your company.

For more information or questions, please contact the Healthcare Services team:

Paul Kacik, Managing Director: pkacik@hexagoncapitalalliance.com

Brad Erhart, Director: berhart@hexagoncapitalalliance.com